Correlation Between Beijing Yanjing and PetroChina
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By analyzing existing cross correlation between Beijing Yanjing Brewery and PetroChina Co Ltd, you can compare the effects of market volatilities on Beijing Yanjing and PetroChina and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Beijing Yanjing with a short position of PetroChina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Yanjing and PetroChina.
Diversification Opportunities for Beijing Yanjing and PetroChina
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and PetroChina is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Yanjing Brewery and PetroChina Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PetroChina and Beijing Yanjing is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Beijing Yanjing Brewery are associated (or correlated) with PetroChina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PetroChina has no effect on the direction of Beijing Yanjing i.e., Beijing Yanjing and PetroChina go up and down completely randomly.
Pair Corralation between Beijing Yanjing and PetroChina
Assuming the 90 days trading horizon Beijing Yanjing Brewery is expected to generate 1.55 times more return on investment than PetroChina. However, Beijing Yanjing is 1.55 times more volatile than PetroChina Co Ltd. It trades about -0.08 of its potential returns per unit of risk. PetroChina Co Ltd is currently generating about -0.17 per unit of risk. If you would invest 1,046 in Beijing Yanjing Brewery on August 29, 2024 and sell it today you would lose (35.00) from holding Beijing Yanjing Brewery or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Yanjing Brewery vs. PetroChina Co Ltd
Performance |
| Timeline |
| Beijing Yanjing Brewery |
| PetroChina |
Beijing Yanjing and PetroChina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Yanjing and PetroChina
The main advantage of trading using opposite Beijing Yanjing and PetroChina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Yanjing position performs unexpectedly, PetroChina can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PetroChina will offset losses from the drop in PetroChina's long position.| Beijing Yanjing vs. PetroChina Co Ltd | Beijing Yanjing vs. China Mobile Limited | Beijing Yanjing vs. Ping An Insurance | Beijing Yanjing vs. China Petroleum Chemical |
| PetroChina vs. Guilin Seamild Foods | PetroChina vs. Great Sun Foods Co | PetroChina vs. Jiahe Foods Industry | PetroChina vs. Lander Sports Development |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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